In this paper we tackle the problem of privacy and confidentiality in Identity Management as a Service (IDaaS). The adoption of cloud computing technologies by organizations has fostered the externalization of the identity management processes, shaping the concept of Identity Management as a Service. However, as it has happened to other cloud-based services, the cloud poses serious risks to the users, since they lose the control over their data. As part of this work, we analyze these concerns and present a model for privacy-preserving IDaaS, called BlindIdM, which is designed to provide data privacy protection through the use of cryptographic safeguards.